Question
Oliver Company provided the following information for the years 2015 and 2016: Oliver Company Income Statement For the Year Ended December 31, 2016 Sales $
Oliver Company provided the following information for the years 2015 and 2016:
Oliver Company | |
Income Statement | |
For the Year Ended December 31, 2016 | |
Sales | $ 75,000 |
Cost of goods sold | (20,000) |
Depreciation expense | (2,000) |
Other expenses | (13,000) |
Net income | $ 40,000 |
Oliver Company | ||
Comparative Balance Sheets | ||
At December 31, 2015 and 2016 | ||
2015 | 2016 | |
Assets | ||
Cash | $ 24,600 | $ 64,600 |
Accounts receivable | 5,400 | 9,200 |
Inventory | 8,000 | 6,000 |
Property, plant, and equipment | 160,000 | 175,000 |
Accumulated depreciation | (18,000) | (20,000) |
Land | 20,400 | 47,000 |
Total assets | $200,400 | $281,800 |
Liabilities and equity | ||
Accounts payable | $ 8,600 | $ 10,000 |
Mortgage payable | 40,000 | |
Stockholders equity | 191,800 | 231,800 |
Total liabilities and equity | $200,400 | $281,800 |
Required:
1. | Calculate the change in cash flows that serves as the control figure for the statement of cash flows. |
2. | Prepare a schedule that provides operating cash flows for the year 2016 using the indirect method.Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) |
3. | Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 2016. Given this information and assuming that the operating cash flows for 2016 are $41,000, calculate the ending balance for accounts receivable. |
Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.
Amount Descriptions | |
---|---|
Decrease in accounts payable | |
Decrease in accounts receivable | |
Decrease in inventory | |
Depreciation expense | |
Increase in accounts payable | |
Increase in accounts receivable | |
Increase in inventory | |
Net cash from operating activities | |
Net income | |
Net loss |
1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows.
3. Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 2016. Given this information and assuming that the operating cash flows for 2016 are $41,000, calculate the ending balance for accounts receivable.
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